Highfield Resources Limited’s Post

Highfield Resources Limited is pleased to announce that it has entered into a non-binding Letter of Intent (LOI) for cooperation with Yankuang Energy Group Co., Ltd (Yankuang Energy) and a number of strategic investors, in relation to a proposed strategic cooperation that would transform Highfield into a globally diversified #potash company and deliver the remaining funding for Phase 1 of the Muga potash project (the Proposed Cooperation or the Proposed Transaction). The Proposed Cooperation would entail the raising of US$220 million of equity capital by Highfield from strategic investors (Cornerstone Placement) and the inter-conditional acquisition from Yankuang Energy of the Southey potash project in Saskatchewan, Canada (Southey Vend-in) by way of a direct or indirect acquisition of 100% of the shares in Yancoal Canada (a subsidiary of Yankuang Energy), as further outlined below. Strategic Rationale and Key Highlights of Proposed Transaction: 🟩 Muga, which is construction-ready, is expected to be fully funded from completion of the Proposed Transaction. 🟩 Establishing a leading pure play potash company with a diversified portfolio of projects in tier-1 jurisdictions underpinned by strong ESG credentials. 🟩 Expected combined production capacity of 3.8Mtpa (assuming completion of the Proposed Transaction) and an experienced leadership team with a proven track record that is ready to construct Muga initially and to develop and construct Southey after that. 🟩 Opportunity to unlock significant value with the support from a strong shareholder base and the establishment of a partnership with Yankuang Energy, a leading diversified Chinese energy company, with deep global connections and financial resources who is committed to support Highfield’s growth and development. Additional synergies and value creation opportunities expected from partnering with the strategic investors. Link to release: https://bit.ly/3SfzEeq $HFR #fertilizer #macronutrient #potassium #muriateofpotash #MOP #agriculture #FoodSecurity #ASX #mining ASX.HFR #invest _______________________

David Rhodes

Managing Director of Endeavour Financial

3mo

Well done!

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Richard Lively

Senior Process Specialist

3mo

Great news.

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